IN an unprecedented move, the country’s opposition went on a frenzy after mutilating crucial amendments to the taxation measures proposed by Finance Minister Amos Kimunya that could result into a projected revenue loss of Sh 300 million from the current budget.

The lawmakers, furious with Kimunya’s alleged arrogance and lack of consultation were on the war path to humiliate the government by throwing out key tax measures proposed in the Finance Bill 2006 with far reaching implications to the country’s economy.

As a result, the country may record a revenue loss of nearly Sh 300 million that had already been factored in this year’s budget. Kimunya will have to go back to the drawing board to seek alternative measures to raise this amount to sustain his budget.

The rejected tax proposals in the Amendments to the Bill were Alcohol tax, Capital Gains Tax, Constitutional Office Holders Tax, Sugar Industry Levy tax, Political Party Donation tax, the Insurance Industry Tax, Taxation on Banks with branches abroad and amendments to the Central Bank of Kenya to create an office of Chairman.

They rejected tax proposals outlined by the minister during his budget speech that was hailed by all and sundry as pro-poor, which was aimed at seeking the approval of taxation measures that would have boosted revenue collection in this financial year.

As a result, alcohol brewers have a reason to smile since there will be no increase in taxes from the original 45 percent to the proposed 65 percent on wines, spirits and beer. This will deny Treasury the Sh25 billion that had been included in the budget, taxes that came into effect on July 1 after the minister read his budget.

Legislators in supporting amendments put by finance committee of parliament said the increase in tax on wines and spirits was clearly tailored towards disadvantaging the local industry at the expense of multinational firms that those in government had vested interests in.

Taxation, they argued, should not be used as a tool to kill the local industries or put their competitors at an advantage. The move, is likely to be a breather to consumers of these products since prices were expected to return to where they were before June budget.

Sweet news greeted constitutional office holders when the Opposition rejected thegovernment’s bid to widen the tax net to cover each and every Kenyan when proposals to tax their House and Entertainment allowances were trashed.

This will see judges, the Attorney-General, Controller and Auditor-General and the Electoral Commission of Kenya among others enjoy their hefty parks tax-free.

Those wishing to sell properties like land and houses will rest assured that their proceeds will not be taxed. The MPs said that introducing taxation on property would push them out of reach of the poor who wished to own houses at cheaper prices.

Local banks wishing to open branches in foreign countries too, have a reason to smile following the removal of regulations governing the same that were proposed by Kimunya in the Finance bill that was approved by the house on Thursday and now awaits presidential assent

The opposition also rejected the proposed sugar development levy. Although Kimunya had backtracked on this during debate on the Bill in its second reading, MPs authorised Kenya Revenue Authority to collect the levy from consumers and not farmers.

Kanu and the Liberal Democratic Party (LPP) members rejected a proposal to create the posts of chairman and deputy chairman for the Central Bank of Kenya that was touted to streamline operations and improve on governance.They argued that this was a government move to interfere with the independence of the superior bank and create conflicts of interest between the governor and the chairman– a political appointee of the President.

Kimunya suffered lack of support from the government side with about 20 MPs sitting helplessly as the minister was humiliated forcing him to state at one point that “ it doesn’t matter to me whether you pass them or not” throwing up his hands in desperation. Daniel Khamasi chaired the Committee of the Whole House where this proposals were carried or rejected.

However, despite these, the entire House this week backed Kimunya in approving the Micro Finance Bill through its first reading and commencing the Insurance Amendment Bill 206.

The Micro Finance Bill seeks to create a legal framework to govern operations of over 4,000 micro finance and credit institutions currently operating in Kenya in order to ensure their growth and seal loopholes for phony institutions to fleece Kenyans.

The House at the same time granted leave to nominated MP Dr Julia Ojiambo to introduce Community Social Enterprise Bill that will see the creation of a fund to provide financial support and entrepreneurial skills to rural and urban poor among them women and youths.

It also commenced debate on the Western University of Science and Technology Bill that will see the birth of the country’s seventh public university and increase the level of intake for students seeking university education in Kenya and particularly Western Province where the institution is based.

Parliament also started debate on a private members motion by Ndhiwa MP Orwa Ojode to introduce a bill to amend the Petroleum Act Cap 116 Laws of Kenya to empower the Minister for Energy to fix petroleum prices.

Finally parliament was unanimous in calling for a comprehensive report from internal security minister John Michuki regarding the escalating insecurity, ethnic violence and spate of robberies and car jarkings targeting influential Kenyans.

TENSION gripped the Murang’a District Lands and Housing offices yesterday forcing members of staff to flee after a team of experts made an impromptu visit to their offices.

The team, led by Nyeri DO 1 Mr Joseph Kaniri had a difficult time explaining to the already shaken officers that theirs was only a routine visit to the district aimed at educating the officers on how to improve service delivery.

Speaking to the Press, Kaniri disclosed that there had been a public outcry over long delays in the processing of title deeds and general laxity in service delivery at the various lands offices in the province.

An inspection conducted by the team at the offices however established that the offices were untidy and there was a general disorganisation among the officers.

It was further discovered that there were no toilet facilities for clients.

The team then conducted a technical demonstration (Gemba Kaizen) of the offices, including the archives section.

Gemba Kaizen is a Japanese initiative adopted by the government to improve service delivery in the civil service.

Elsewhere, the 3,054 land allotees in three settlement schemes in Kibwezi division of Makueni District have been exempted from the mandatory Sh2,500 per acre of the allottement fee, area District Land Adjudication Officer, Eustace Kithumbu has said.

The move follows a government decision to lower the charges from Sh2,500 per acre to a flat rate of Sh3,000 for all land between 0 and 10 acres.

Those allotted land more than 10 acres will pay Sh6,000 for the whole piece of land.

In Tharaka, the government is in the process of finalising restoring peace at Tharaka and Igembe in Meru North District border.

Addressing a public baraza, area DC James Ole Seriani said animosity between the two neighbouring communities was as a result of land disputes.

The DC called on local leaders and other development stakeholders to take a leading role in educating area residents on the importance of promoting the culture of peace and harmony in a bid to create a conducive atmosphere for development activities.

He regretted that several learning institutions in the area had to be closed down due to insecurity which had a negative impact on education development.

NOMINATED Member of Par­liament Njoki Ndung’u has called on sexual vio­lence victims to activate the Sexual Offences Act by reporting such cases to the police.

She said the Act, signed into law by President Mwai Kibaki two months ago, would not be effective un­til the victims of sexual violence re­port the cases to the police.

The MP spoke during the first con­ference of its kind incorporating Ken­ya’s barmaids aimed at sen­si­tising them on HIV/Aids. It was attended by more than 500 barmaids from across the coun­try.

Ndung’u said barmaids were among the most vul­nerable groups to sexual harassment and there­fore needed the pro­tection of the law.

Despite the amendment of the Bill before it was passed into law, she said, the Act still has pro­visions for sexual violence victims and assured the bar hostesses of legal protection against bar clients and employers.

She urged the public to respect the bar hostesses’ rights, adding that the profession was critical to the Kenyan serv­ices and hospitality industry, and also a major contributor to the growth of the economy.

Ndung’u was optimistic that the amended parts of the Bill would be re­viewed in future as most of the sections were crucial to the pro­tection of the vulnerable groups in the country.

“The character of a victim should not be relevant in court in cases of sexual violence, and this is one of the parts that Parliament rejected,” she said.

However, the MP warned the pub­lic against using the Act as a weapon against possible sexual offenders and instead only use it as shield, noting that the Act was gender neutral.

The union representing the in­ter­ests of the bar hostesses country wide is ex­pected to fight for the rights of its mem­bers and also air out their grievances to the public in an effort to elimi­nate the stigma associated with being a bar attendant. The members distanced themselves from prostitution and commer­cial sex workers and called upon the society to respect their rights and con­tri­bution to the improvement of the Kenyan economy.

“Some times we are forced by cir­cum­stances to resort to working in night­clubs and we only sell alcohol and not our bodies,” said Jacinta Wanjiku, one of the barmaids in Nai­robi.

There are about 150,000 women bar attendants country wide who are forced to work for long hours with little or no pay at the end of each month.

Meanwhile a Kericho court was stunned yesterday when a father of a defiled minor was sentenced to 18 months imprisonment after admitting to have conspired with her daughter’s defiler to cover up the matter.